Appeals court: Troy doesn't own transit center land

The fate of a multi-modal transit center near Maple and Coolidge in Troy that broke ground in November is unclear after a Michigan Court of Appeals ruled Friday the city did not secure full funding for the project before a consent judgment with the owners of the property had lapsed.

Grand Sakwa Properties LLC filed a motion in Oakland County Circuit Court in July 2010 that argued the land it handed over to Troy for the project should be transferred back to the company.

The land in question was given to Troy as apart of a 1999 consent judgment, amended in 2000, that allowed Grand Sakwa to build Midtown Square, a 77-acre mixed-use commercial/residential development at the corner of Maple and Coolidge, even though Troy's zoning ordinance at the time did not allow such developments.

The Appeals Court ruling states: "Troy did not establish genuine issue of material fact that it complied with the funding requirement in the consent judgment or deed. While it made various attempts to finance the planned project toward the end of the 10-year period, it did not have a supply of money available for the project. Under any of the commonly-understood definitions of the term, the transportation center was not 'funded' and, therefore, title to the disputed property reverted to Grand/Sakwa once the June 2, 2010 deadline passed, and Grand/Sakwa was entitled to judgment as a matter of law."

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In June 2011, Oakland County Circuit Judge Rae Lee Chabot ruled against Grand Sakwa on its attempt to take back the 2.7 acres of land the city acquired behind the shopping center, giving Troy the impetus to build the transit station that would serve as a hub for trains, buses and taxis.

At the time, Chabot found that $1.3 million Troy set aside along with about $10 million in federal grants and appropriations satisfied the consent judgment issued to the city and the developer in 2000.

The crux in the dispute, though, lies within one paragraph of the agreement which explicitly states: "If the Transportation Center is not funded by the City within 10 years from the entry of this Amended Judgment ... then all right, title and interest of the City in the property designated at the Transportation Center, shall revert to (Grand/Sakwa)"

According to the ruling, the consent judgment states that Grand/Sakwa "would deliver to Troy a warranty deed for the transportation center land," which was delivered and recorded on June 22, 2001.

In the deed, it states the "property shall automatically revert to (Grand/Sakwa) for its own use if the transportation center is not funded by (Troy) by June 2,2010 pursuant to and in accordance with the Consent Judgment."

Alan Greene, attorney for Grand/Sakwa, was not available for comment as of press time.

There's an array of options the city can take, said Lori Grigg Bluhm, Troy's counsel in the case, including: filing an appeal, filing a motion for reconsideration, negotiating with Grand/Sakwa.

"This does not necessarily mean the transit center will not go forward," Bluhm said, adding that in the consent judgment, it states if the city did not have the project fully funded, "then we could purchase the property for an amount to be set by an independent appraiser."

Bluhm said the potential actions will be analyzed and presented to city council at is next scheduled meeting May 13.